Good writeup. Centralized exchanges are cryptocurrency weak point. The whole cryptocurrency could be seriously harmed from them. I won't be surprised if few individuals own majority of the exchanges. Something similar to fractional reserve is most likely going on. Owners could be converting huge amounts of cryptocurrency to fiat and lending them to businesses for profit.
Hopefully in the future it will be possible to prevent cryptocurrency from being sent to centralized exchanges
It is very worrying if bitcoin is sent to a centralized exchange, I think it will eliminate the essence of BTTC. with a centralized system, technological advancements will be the same as conventional systems today